VW more than twice the expense of emissions to € 16,2 billion

VW logoImage copyrightReuters
Volkswagen has more than doubled its provisions for scandal diesel emissions by up to € 16,2 billion (£ 12.6 billion).

Last year, he told shareholders that € 6,7 billion was allocated for potential costs or recall.

The increased amount includes the cost of fixing cars that violate the norms of air pollution, buying vehicles and legal expenses.

This step, like the German automakers have agreed to withdraw the 630,000 diesel vehicles to configure the software to ensure the engine.

German Transport Minister Alexander Dobrindt said Mercedes Benz, Opel and the Porsche, and Volkswagen and Audi will adjust the parameters, elevated levels of emissions such as nitrogen dioxide in some diesel vehicles.

Transport Secretary Patrick McLoughlin said that he would ask the producers if they offer a similar fix for car owners in the UK.

Daimler shares fell 4.6% in Frankfurt after the owner of Mercedes said he began an internal investigation of its testing at the request of the US Department of Justice of diesel fuel.

He said the net profit for the first quarter fell by a third to € 1,4 billion to contain costs associated with the launch of the new E-Class series. The more-than-expected decline occurred despite a 2% increase in revenue to € 35 billion, as sales rose 7% to 683.885 vehicles.

Mercedes carImage copyrightAP
VW Executive Officer Matthias Mueller said he could not put a figure on the total cost of the scandal emissions to a final agreement was not reached with the US authorities.

the company also can not release preliminary findings from the study are not ordered Jones Day law firm to reach an agreement, he said.

VW still face fines US Department of Justice as part of the expected settlement of civil and possible criminal charges.

On Thursday, the US Supreme Court revealed details of the deal between VW and the US Department of Justice for more than 500,000 of its American owners of diesel vehicles affected by the cheating emissions.

The deal will include the purchase of shares and "substantial" compensation to owners of mostly two-liter vehicles.

US District Court Judge Charles Breyer said he expected an agreement between VW and controls a total area of about 90 000 large cars and SUVs, to decide "promptly". The final details of the proposed package will be announced in June.



VW losses

The increase in appropriations emissions VW pushed to an annual loss before taxes in the amount of € 1,3 billion compared to a profit of € 14.7 billion last year.

VW expected volume of group sales to fall 5% in 2016.

Chief Financial Officer Frank Witter said: "We are again working in extremely difficult conditions in which global demand for new vehicles is reduced, exchange rates and interest rates remain extremely volatile and competition in many of our markets is enhanced."

VW shares closed down 1.7% in Frankfurt on Friday, and more than 40% lower than at this time last year.

Evercore ISI analysts said in a note: "Investors should be exempted from the fact that VW has put a number on the financial risk associated with the vast majority of its diesel issues ... management should now be able to deal with the turnover planned VW brand more actively.

NordLB analyst Frank Schwope, who has a "hold" rating on the shares of VW, said: "The crisis in Wolfsburg is far from over yet."

Artificial Intelligence: Go Lee Se-dol master wins against AlphaGo program

AI Media captionGoogle lost to Lee Se-dol after winning three consecutive games

Master game player Guo won his first match against the computer program Google, after losing three in a row in the competition the best of the five.

Lee Se-dol, one of the best players in the world, said his victory over AlphaGo was "priceless."

Chinese board game is considered to be a much more difficult task for the computer than chess, and wins AlphaGo were seen as a landmark moment for artificial intelligence.

The fifth game will be played on Tuesday.

Lee Se-dolImage copyrightReuters
Image captionMr Lee is one of the greatest players in the game today
Go is a game of two players who take turns putting black and white stones on a grid of 19-by-19. Players win by taking control of more territory on the board.

Commentator Michael Redmond said AlphaGo played well until the middle of the game, but in the course of 78, Mr. Lee played brilliantly.

Speaking after his victory, Mr Lee said: "I never congratulated so much, because I won one game."

Google representatives said that the defeat was "very valuable" for AlphaGo, as it identified the problem that now they can try to fix it.

Tweet by Demis HassabisImage copyrightOther
Image captionDeepMind executive director Demis Hassabis reacts to news
In the first game of the series, AlphaGo triumphed very narrow margin - Mr. Li led most of the match, but AlphaGo managed to create a strong leadership role in its final stages.

After losing the second match in the deep mind, Lee Se-dol said he was "speechless," adding that the car AlphaGo plays "almost the perfect game".

In the third game of the commentators said that Lee Se-dol brought his "top game", but that AlphaGo won "in great style".

AlphaGo system was developed British computer company DeepMind, which was bought by Google in 2014.

She created her own experience studying old games and teasing game patterns.

DeepMind executive director Demis Hassabis said AlphaGo "played himself, a different version of itself, millions and millions of times, and each time there is progressively a little bit better."

"He learns from his mistakes," he told the BBC.




Media captionA quick guide to Go
Go, is believed to date back to several thousand years ago in China.

The use of black and white stones on a grid, players will have the upper hand, surrounding their opponents with their own part.

Rules easier than chess, but he usually has a range of 200 strokes, compared with about 20 in chess - there are more possible positions in Go, than atoms in the universe, according to a team in DeepMind.

It can be very difficult to determine who wins, and many of the best players to rely on human instinct.

Minister: "Legacy" landline charges should be abolished

Telecoms Engineer Picture copyright
Homeowners signing up for broadband packages may be exempt from the rent on their land line if they do not use it, in accordance with the proposals to be discussed by the Minister of Culture.
Ed Vaizey said charges of about £ 18 per month are "obsolete."
He wants homeowners to pay only for those services that they use to describe the current system as "billing system analog in a digital world."
Minister welcomes BT, TalkTalk, Virgin and Sky for discussion.
One in five home owners do not make fixed line calls, but have to pay for landline connections.
Mr Vaizey said: "If the company came up with a different pricing structure that is fine, as long as consumers can see what they are paying."
According to the minister, ending hidden costs, such as line rentals may mean other products are becoming more expensive, but he wanted transparency around pricing.
Price confusion
Advertising watchdog, the ASA, and control communications, Ofcom's, need to introduce new rules on how such packages are sold in May, after a study found there was widespread confusion about the price.
A spokesmen for BT said. "Any use of the broadband uses a landline I think the focus is more on ensuring clarity about the charges when companies advertise their broadband packages.
"BT glad to meet with the minister and other players in the industry to discuss ways to make costs more understandable for consumers."
BT Openreach logoImage copyrightPA
Business services
In a separate development, said Ofcom's BT to install high-speed cables for the business faster and reduce the prices charged for them.
It follows my review on the "leased lines", which are used by large enterprises and the mobile operators and broadband data transmission on their networks.
Most of these lines are owned and maintained by the name BT competing suppliers.
BT animal needs to be done to meet the growing expectations.
Ofcom said BT speech was not "acceptable", but the company says that some of the recommendations of the regulator has done little to help her "to lay the basis for improving services."
Draft proposal protrude less than a month after Ofcom has promised measures to improve the work of the BT Openreach, which is his business is responsible for the telecommunications and broadband infrastructure.
In February, the regulator stopped demanding it was split from the BT, but said it was still an option.
The BT 'relied on'
Ofcom said that Openreach takes too much time to install leased lines and does not provide reasonable assurance that services will be provided by the date of the first customers.
The proposed regulation would apply to high-speed "Ethernet" services, which are the most common type of leased lines used by enterprises, as well as the older cables.
BT said the construction of new high-speed lines is often difficult and requires street works, which created delays beyond its control.
Jonathan Oxley, Director of Ofcom's Competition Group, said: "BT relies on many companies to install these lines, but its performance was not acceptable.
"These new rules would mean companies across the UK benefit from faster setting times, greater certainty as to the timing of installation and quick repair, if it all goes wrong."
Ofcom said in 2011 the average time between a customer order line and be ready to use increased from 40 to 48 working days.
She wants that reduced to 46 days before the end of March 2017 and returned in 40 days by 2018.
Ofcom plans to reduce the wholesale price BT charges for leased lines within three years, and expects that these reductions must be transferred to enterprises.
However, the BT said it will not do anything to help him improve customer service.
Bank of England to work with the new body cybersecurity
The first task of the new center of the UK Cyber Security will work with the Bank of England, the government announced.
Work will include the establishment of standards for the financial sector in terms of sustainability of the type of cyber threats that could undermine the economy of the UK.
The new body - now renamed the National Center for Cyber Security (NCSC) - was opened in the last year the Chancellor.
It is designed to bring the experience of the UK in the cyber one place.
Kieran Martin, now a senior official in the DSP, will be the first head in the NCSC.
"We must have a one-stop shop that people inside and outside the government can go," Matthew Hancock, Minister for the Cabinet Office told the BBC, saying that the NCSC will strive to be an authoritative source in the UK information security information.
The new center is designed to deal with the criticism of the existing mechanisms, as too opaque.
Increased access
DSP is the lead agency on cybersecurity, but because it's secret intelligence service in Cheltenham, it has not always been available or set to exchange information and communicate more broadly.
The new center is designed to remedy this problem by having a foot in the closed world of intelligence and public and corporate spaces.
The center will work with regulators - such as banks - provide advice to the private sector.
It will also work with other government agencies, critical national infrastructure and the wider business community and the public.
The greater the potential risk to the country, the closer the facility is likely to be associated with a particular department or business.
In the event of future violations, such as that of cyber-Talk-Talk in the past year, it is likely to be the center, which acts as the focal point for communications and consultations.
Those involved stress that the role of government is to protect the country from cyber-attacks, and to promote good practice, but that the responsibility for any attack that does take place will still rest with those who owns the data.
NCSC will be based in London and is expected to fully open for business in October.
Along with Ciaran Martin, Dr. Ian Levy, currently Technical Director of Cyber Security at GCHQ, joined as technical director.

International Appeal to curb steel overproduction

Chinese steel plant Image copyright Getty Images
Image captionChina rejects claims dumping price
international group of countries began production called for urgent measures to curb overproduction.
The call comes after days of international negotiations to find measures to overcome the crisis in the industry has failed.
The joint statement comes from the US, Canada, EU, Japan, Mexico, South Korea, Turkey and Switzerland.
record production in China in recent months has led to criticism that it distorts international markets by selling steel at a loss.
The statement calls for "continuing international dialogue" to remove the "policy market distortion" and to promote greater transparency in the global industry.
On Monday, representatives from more than 30 countries met in Belgium, but concluded that only an excess of production capacity had to be dealt with in a quick and structured way.
US clearly pointed a finger at China, saying the country will face action if it did not cut overcapacity possible trade.
But China has rejected suggestions that he subsidized its unprofitable steel companies, and the meeting ended without any formal agreement.
Media captionIs China is to blame for the problems of the UK steel industry?
production record
China is the world's largest steel producer, which is about 822 million tons per year.
On Tuesday, the country said that its production was a record last month as profit growth encouraged more production.
With the domestic market of China slowing down, their manufacturers were looking for export markets such as the EU.
This has led to accusations of unfair competition that Chinese manufacturers "dumping" Steel production to foreign markets - it is not just to sell them cheaply, taking advantage of their lower production costs, but in reality sell them at a loss.
Global steel capacity
63.7bn
tons in 2015
67.5% used in 2015
70.9% used in 2014
OECD
Getty Images
Tata Steel in India has recently announced plans to sell its loss-making UK business, with reference to the "rapidly deteriorating" trading conditions due to global overproduction.
In 2015, the EU imposed anti-dumping duties for six months on certain steel imports from China and Taiwan.
The EU and China have clashed over the alleged dumping of products such as wine, solar panels and steel pipes.

Yen strength drags down Japan exporters

Falls on Wall Street have been followed by many Asian markets opening down on Friday.
Japan’s benchmark Nikkei 225 has shed 1.48% or 221.56 points at the start to 15,516.17.
The strength in the Japanese yen is in putting pressure on shares in exporting companies. The yen surged to a 17-month high against the US dollar overnight.

The dip in the US currency follows the release of Federal Reserve minutes.
The minutes published earlier this week pointed to concerns about the US central bank’s limited ability to tackle a global economic slowdown.

US stocks closed lower overnight on renewed concerns about the state of the global economy.
Over in South Korea the benchmark Kospi index has also opened down by 0.65% or 12 points at 1,961.10.

In Australia, the benchmark S&P/ASX 200 kicked off Friday’s trading session in the red, giving up 50 points or 1% and the index is hovering around 4,915.70.

Petrobras in Brazil ax 12,000 jobs

Petroleo Brasileiro--Petrobras-PBR-logo

State oil company of Brazil, of Petrobras, said it would cut 12,000 jobs by 2020.

voluntary dismissal program will save $ 9 billion in the company, which is struggling with losses following a price-fixing and bribery scandal.

It is also affected by the global downturn in oil prices.

Petrobras, which reported losses for the past two fiscal years, is expected to spend $ 1.23bn on the implementation of the plan of job cuts.

Petrobras has long been one of the largest employers in Brazil, with more than 80,000 employees.

However, he has seen his business suffered a huge drop in oil prices in the world and one of the biggest corruption scandals in the country's history, which went to the heart of the country's government.

The announcement that 12,000 jobs are to be cut over the next five years, the investment is part of the transformation plan over the fate of the company.

Analysis: Daniel Gallas, business correspondent in South America

This is not a good year for oil companies, as there is excess supply in the market and world prices hit records.

But of Petrobras - embroiled in a massive corruption scandal - things are even worse.

The company recorded two consecutive years of heavy losses and stopped paying dividends. Shares fell 50% in value since the beginning of the study.

A Chief Executive Aldemir Bendine to the crisis is to cut.

Petrobras drastically reducing their numbers - employees, assets and investments - in order to become competitive again.

If Petrobras, to become great again, he must first transform ourselves into a smaller and more efficient company.

It reported its biggest quarterly loss to date in the last three months of last year - $ 10.2 billion - after the loss of its oil fields and refinery projects.

Corruption scandal involving price-fixing, bribery and political setbacks in the past two years dented confidence in the business. Some former leaders of Petrobras were imprisoned.

The scandal has also harmed the reputation of President Dilma Rousseff, who was on the board of the company at the time of the crimes.

Ms. Rousseff faces the possibility of impeachment on the misuse of false statements.

Alaska Air to buy Virgin America in the $ 4 billion deal

Horizontal tail of Virgin Atlantic and Alaska Airlines aircraftImage copyrightAlaskaAirlines
Alaska Air Group has agreed to buy Virgin America in the transaction $ 4 billion (£ 2.8 billion) to create the fifth-largest US airline.

This will allow Alaska Seattle expand into profitable hubs such as San Francisco and Los Angeles.

Two board "unanimously approved" the deal, which will see the Alaska purchase Virgin America for $ 57 (£ 40) per share.

However, the Virgin founder Sir Richard Branson said that "unfortunately, nothing [he] could do to stop the" deal.

This merging of commercial airlines as US Airways and American Airlines first in the United States combined in 2013 to make the largest carrier in the world.

"Sadness"

Sir Richard BransonImage copyrightFrazer Harrison
Image captionSir Richard expressed his "sorrow" in the transaction for the acquisition of Alaska Air Virgin America
Virgin America, which accounts for about 1.5% of US domestic flight capacity was listed on the US stock market in 2014 as an offshoot of the London Virgin Group.

In a company blog, Sir Richard said: "I would be lying if I did not admit that our great sadness combined with another airline.

"Because I am not an American, the US Department of Transportation provided I take some of my shares of Virgin America, as the non-voting shares, reducing its impact on any absorption. So it was not, unfortunately, I could not do anything to stop it" .

He added that the consolidation is a trend that "can not be stopped," with the four airlines currently controlling more than 80% of the US market.

expansion

Alaska and its partner regional airlines, which together account for about 5% of US domestic flight capacity, serving more than 100 cities in the US, Canada, Costa Rica and Mexico.

If the transaction is approved by the state of US regulators and shareholders of Virgin America, the companies plan to complete the transaction before January 1, 2017.

Brad Tilden Regional, chairman and chief executive officer of Alaska Air Group, said: "With our extended network and strong presence in California, we offer customers a more attractive flight options to travel non-stop."

Virgin America shares rose 40% to $ 54.52 - just below the offer price - in early trading.

Alaska, which is reported to have beaten competition from rival Jet Blue Airlines for the company, fell 4.7% to $ 78.15.

Yellen: Fed should "proceed with caution" with an increase in rates

Janet YellenImage copyrightGetty Images
The US Federal Reserve chair Yellen system said that the Fed should "proceed with caution" before raising interest rates.

She said that global risks were not to have a profound impact on the US, but caution is still needed.

Global changes and risks have led politicians to draft a slower path of rate increases than initially expected in December, said Ms. Yellen.

US markets rose during his speech at the Economic Club of New York.

Her tone was similar to the Fed's statement in mid-March, when the central bank has not made any bid changes and guided the expectations with respect to the slower increase after the increase in December.

Ms. Yellen repeated his message from previous pubic speech that volatile oil prices and a slowdown in China, along with the way in the near future inflation will reach 2% target by the Federal Reserve, are the key factors governing the Fed to adopt a gradual approach to higher rates.

Omer Esiner, chief market analyst at Commonwealth Foreign Exchange, said that her caution was not surprising, but stood in contrast to the support for rate increases from other Fed speakers in recent days.

He added: "Ultimately, the comments [Yellen to] sound is not consistent with the looming hike rates in April and leave considerable doubt about whether the increase rates in June.

Earlier Tuesday, the head of the San Francisco Fed, John Williams, said that the US economy is doing "quite well."

As it has done in previous speeches, Ms. Yellen believes that the market should be open to the possibility of the news, which increases confidence.

"We must not ignore the greeting probability that economic conditions may be more favorable than we now expect," she said.

Audiences in New York laughed when Ms. Yellen was asked how long the Fed is expected to take to reach "normal" interest rate and whether she felt the market was not able to understand the bank's plan.

The Fed is trying to reassure markets of its "gradual" plan since the entry into force in December.

After the speech, Ms. Yellen, in a Wall Street rose sharply. S & P 500 rose 0.8% and the Nasdaq jumped 1.5%, while the index Dow Jones Industrial Average added only 0.1%.

Unconventional Instruments

Although the focus of his speech was on the interest rate, Ms. Yellen also consider other tools the Fed has at its disposal, if the US economy were to suffer a decline.

These innovative tools - including asset purchases, forward direction and negative interest rates, which have been used in Europe - have been criticized for helping the banks, not to stimulate the economy.

Ms. Yellen defended the use of these tools, saying they have helped prevent the recession to become worse.

"They were an effective policy, they have made a difference, and inflation could be lower and unemployment is higher - from the significant amounts - if we did not use this policy," she said.

Foxconn modify absorption Sharp

Imaginary walk before Sharp AQUOS "s flat-panel TVs in an electronics store in Tokyo, Thursday, February 25, 2016 Image copyrighted

Image Caption Sharp struggling with heavy debts and went through two main injections
Taiwanese manufacturer Foxconn says it has finally agreed to take on the struggling Japanese electronics company Sharp.

Foxconn said the deal is worth 389bn yen ($ 3.5bn, £ 2,4 billion) and give her a 66% stake in Sharp.
The Foxconn, which assembles most of the iPhones in the world, for the first time offered to invest in the troubled Japanese company in 2012, but the negotiations failed.

Both companies said that the deal will be signed on April 2nd.

This will be the first foreign capture of a major Japanese electronics firm.
Describing himself as a "world-class leaders in the technology industry", the Foxconn and Sharp announced that they will form a "historic strategic alliance."

The innovative firm

Established in 1912, Sharp is one of the oldest Japanese technology firm.
Japanese officials are reluctant to let it fall under foreign ownership because of the distinctive technology behind its display panels.

Prior to the announcement of the deal with Foxconn, Sharp discussing competing proposals from the government-backed consortium of Japanese investors.

Although in recent years there has been decline in his life, the company is still the leader in LCD technology, a key asset for Foxconn.

In 2012, Sharp was close to bankruptcy input. He is struggling with heavy debts and went through two main injections for the past four years.

Sharp innovations include mechanical pencil in 1915 and innovative developments in television technology.

Star Citizen game to reach $ 100 million funding milestone

Early artwork for Star CitizenImage copyrightRoberts Space Industries
Image captionThe ambitions coders behind Star Citizen expanded as it grew Development Fund
Star Citizen Crowdfunded video game grossed more than $ 100 million (£ 66m) from fans and patrons.

The drive funding for space exploration, trade and combat games began in 2012 on Kickstarter.

Since then, the game continues to raise cash from people who have signed up to play and test early versions.

The milestone comes as a virtual reality Oculus developer confirms that Eva space combat game: Valkyrie will be the name of the launch of his headset.

crowded space

With its Kickstarter campaign is over, Star Citizen continues to raise money through pre-orders, as well as through the sale of spaceships that players can fly and fight in the virtual universe of the game. In October it was announced that over one million people have signed up back and play the game.

This week saw the release of the second test or alpha Star Citizen. It's starting to tie the separate elements of the game developed into a more coherent whole.

So far, players have access to the absolute value of the hangar, where they keep their boats and dog fighting arena. It will also eventually have a first-person element that allows them to take on other players in the ships and space stations. All these elements will exist in a constant universe that players can explore and trade in.

Also under development is a single-user mode called Squadron 42, which allows people to carry out the mission as a rookie space pilot of the Navy. Actors including Gary Oldman, Mark Hamill and Gillian Anderson have all signed up to provide a voice for the role of non-fiction, as shown in this campaign.


Development of the game is conducted under the supervision of veteran developers Chris Roberts, who was responsible for a series of Wing Commander games.

No firm launch date for Star Citizen has not been announced. Until now, Roberts Space Industries developer only said that the game will be launched at some point in 2016.

Star Citizen has competition in the form of two other spacecraft and fighting games - Elite: Dangerous and Eve: Valkyrie.

Elite: Dangerous and got going by raising cash on Kickstarter and was released in March 2014 Big expansion for the game, called Horizons, which allows players to put ships on some planets, due to be released this month.

Eve: Valkyrie is set to be available in early 2016, when the headset Oculus Rift becomes public. A copy of the game is given to anyone that pre-orders for the headset.

China Postal Savings Bank has attracted $ 7 billion ahead of IPO

Postal Savings Bank outletImage copyrightAFP
Postal Savings Bank Image captionChina has branches in remote rural areas of China
Postal Savings Bank of China raised $ 7 billion (£ 4,6 billion) of 10 domestic and foreign investors ahead of an initial public offering (IPO) in the next year.

National Bank has sold 17% stake to investors including UBS, JPMorgan and Investment Board Canada Pension Plan.

The deal is estimated China's sixth largest bank by assets to $ 41 billion.

The bank said the sale of the shares was the largest private collection of funds Chinese financial institution.

Its Chinese investors include Ant Financial Unit Alibaba, Tencent and China Life Insurance.

The banking giant has more than 40,000 branches in China and nearly half a billion customers. It is a subsidiary of the Post Group China, which belongs to the Ministry of Finance.

His public listing in Hong Kong in the next year could rise to $ 15 billion, according to analysts, but the bank did not reveal the time or the size of its IPO.

The placement of shares would make a second Chinese bank Japan Post Bank publicized in Asia after record IPO Japan Post in November.

According to analysts, this move will help the Chinese bank to raise funds at a time when the economy slows down, and bad loans are growing.

Hyundai and Kia miss 2015 sales target

Hyundai car grillImage copyrightAFP
Image captionHyundai expects to sell more than five million vehicles this year, while Kia expects to sell more than three million vehicles
The South Korean automaker Hyundai Motor and its affiliate Kia Motors missed its global sales targets in 2015 for the first time since the financial crisis.

Automakers, which together are the fifth largest automaker in the world by sales, sold 8.01 million vehicles, lower than the forecast of 8.2 million.

They expect sales to grow by 1.5% in 2016, after a flat performance in the past year.

Both brands are facing stiff competition in recent years.

US and Japanese rivals have lost ground to the US recovery, while demand in emerging markets and the world's largest car market - China - was cooling.

At the same time, the weaker yen benefited Japanese automakers as a stronger Korean Won, and plunging currency markets, such as Russia and Brazil has reduced the value of foreign sales of South Korean automakers.

Revenues hit

In October, Hyundai said its quarterly profit fell to its lowest level in five years. Its shares fell more than 12% last year.

The purpose of sales automakers this year marks the weak sales growth over the past 10 years.

The economic slowdown in China, which is the largest market in terms of the group, will continue to have an impact on its growth this year, the company said.

Sales in the second largest economy in the world fell in the first 11 months of last year.

Anxious investors continue to sell shares of Asian

Japanese share Image copyright AFP

Asian markets extended their losses on Tuesday after a 7% dive in mainland China shares on Monday caused the stock sale worldwide.

Japan's Nikkei 225 index fell 0.4% to 18,371.29, while the S & P / ASX 200 in Australia fell 1.1% to 5,213.60, while South Korea's Kospi lost 0.3% to 1,912.43.
Trading on the Shanghai Composite was suspended at the beginning of the previous session after it fell by 7%, triggering a new mechanism for the circuit breaker.
The move spooked global markets.

Overnight, US stock indices lost up to 2% as fears grew that the immersion in Chinese stocks was the beginning of another volatile period after the dramatic market rout last summer.

Adding an escalation of tensions in the Middle East, oil prices also dented investor confidence.
Oil prices were flat after rising as much as 4% compared with the brewing dispute between Saudi Arabia and Iran.

In South Korea, a senior finance ministry official said that if necessary, after a steep dive on Monday that the government will take measures to stabilize the situation on the market.

According to analysts, investors expect to see if Beijing can stop the last sale in Chinese stocks and additional measures will be introduced there.

Rule breaker, which has suspended trading all over the country for the first time on Monday, was created after a sharp fall last summer and was intended to contain the volatility of the market in China.

Gun sales growth in the US, as Obama opens control plans

Jerry Kunzer looks at Smith & Wesson display during the NRA annual meeting and exhibition April 14, 2012 in America's Center in St. Louis, MissouriImage copyrightGetty Images
Image captionThe right to bear arms is enshrined in the Constitution of the United States
Arms sales in the US are rising, as well as President Barack Obama is the control measures aimed at limiting the availability of weapons.

Shares gunsmith Smith & Wesson rose to its highest level since 1999, ahead of President ad.

On Monday, Smith & Wesson raised its sales forecast, saying that the market was "stronger than originally anticipated."

Number of checks on potential buyers - a guide to future sales - has also increased.

National Instant Criminal Background Check System says that checks increased by about 38% last month compared to December 2014.

Smith & Wesson brand update says that ended January 31, expected sales of around $ 175m- $ 180m in the three months. Earlier, the management put the likely figure of between $ 150m and $ 155m.

The company said that the "sell-through of its products in the distribution has been stronger than originally anticipated, which led to a reduction in stocks of the distributor of his firearm." This means that the weapons are bought faster than Smith & Wesson delivers them.

The company said its net income was $ 14.2m (£ 9.46m) for the period, compared to $ 5.2m for the same period last year.

In December, the company said profit was nearly tripled in the three months to October, while net sales increased by 38% over the past five years.

A graph showing the number of inspections carried out by the FBI in December 2007 to December 2015
On Monday, the White House has presented proposals for measures to control firearms, which require more sellers to obtain licenses and more buyers gun to be tested.

According to the US Bureau of Alcohol, Tobacco, Firearms and Explosives will require that people who sell guns in stores, at gun shows or via the Internet to obtain a license and carrying out checks,

The Bureau is also finalizing a rule requiring verification data for dangerous weapons buyers from the trust, corporation or other legal entity. President Obama needs to disclose more details about the plans on Tuesday.

The President said that he will curb gun violence and unregulated sales after a series of mass executions that included an attack last month in San Bernardino, California, that killed 14 people.

James Hardiman, an analyst at Wedbush Securities, said that the increase in sales volume the gun was probably because of the buyers, who fear tighter controls.

News of a strong market saw the gun Smith & Wesson shares up to 11% on Tuesday, despite the equity markets as a whole is significantly reduced. Share Competitor Sturm Ruger rose 7.28% to a 52-week high.

Buying a firearm

arms sales to Smith & Wesson after principal photography

48%

increase in sales year on year in August-October 2012, after shooting a Sikh Temple of Wisconsin

38.8% higher than after the Sandy Hook (December 2012)
12.1% more than the following Charleston (June 2015)
$ 180m projected sales in November 2015 and January 2016, an increase of 38.5%
Smith & Wesson

Osborne warns of "dangerous cocktail" of economic risks

George Osborne
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George Osborne is to say that the UK faces a "cocktail" of the serious threats posed by global economic slowdown in 2016 shapes up to be one of the most difficult since the financial crisis.

The Chancellor will later lay out a litany of risks facing the economy on Thursday in the next 12 months.

This is in contrast to the relatively positive Autumn statement when he said that the UK "is growing rapidly."

People should not become "complacent", that the economy is largely fixed.

There are serious problems, he will say in his speech in Cardiff.

Tensions in the Middle East, slowing growth in China, as well as low commodity prices all weigh on global confidence that he will say in his speech.

On the domestic front, the first rise since 2007, interest rates could come this year.

Treasury sources say that this is not a decision for the chancellor - raising interest rates are subject to the Bank of England - but there are many homeowners with large mortgages, who have never experienced even a small rise in rates.

Unofficially close to Mr. Osborne expressed concern that the growth rate could have an impact on consumer confidence.

Despite what they say, it will mean the return of the UK economy in some semblance of normality.

This is a very sensitive area, and late last night, this part of the speech was still being worked on.

The Chancellor wants to raise this question, but be careful to strike the right tone.

"New threats"

"Anyone who thinks that the mission has been accomplished with the British economy makes a serious mistake," the Chancellor is expected to say in a speech later today in Cardiff.

"Last year was the worst for the global economic growth, as the [financial] disaster, and this year opens with a dangerous cocktail of new threats.

Two workers welded panels of the car at the factory in Sunderland, Nissan, in the north-east of England, 12 November 2014Image copyrightGetty Images
Image output growth slowed captionUK, according to economic surveys
"I'm worried about complacency creeping into the national discussion about our economy.

"The feeling that hard work at home is complete, and we are insured against risks abroad. The feeling we can let up, and the good economic news will just keep rolling.

"We are only seven days in the New Year and already we had concerns news about the stock market falls around the world, a slowdown in China, the deep problems in Brazil and Russia.

"Commodity prices have fallen very significantly. Oil, which amounted to over $ 120 per barrel in 2012, currently stands at less than $ 40.

"It is good for consumers and business customers here in the UK, bad news for the oil and gas industry, worrying for creditors who lent him and a massive problem for countries that depend on it.

"Meanwhile, political developments in the Middle East, with Saudi Arabia and Iran, concern us all."

stagnating

The harsh words of the Chancellor come the same day, the British Chambers of Commerce (BCC) publishes a quarterly economic survey, which gives quite a mixed assessment of business confidence in the UK economy.

Evidence is likely to worry Mr Osborne of the survey of more than 7,000 firms that Britain risks becoming a "two-level" of the economy.

The protest in Basra, Iraq, 6 JanImage copyrightAFP
Image captionPolitical events in the Middle East concerns us all, the Chancellor says
The services sector, which includes retail trade, banking and tourism, works well, although confidence about growth in 2016 already lowered.

In the manufacturing industry - the key to the Chancellor's efforts "re-balance" the economy - a grim prospect.

BCC Research suggests that confidence among manufacturing enterprises is below the pre-crisis levels of 2007 and that the sector is in a state of stagnation.

Mr. Osborne loves to talk about the "march of the creators." Someone may say that it is a slow stirring.

"It's not enough to rely on consumer spending and the housing market for economic growth, not to rely solely on services, to stimulate export growth. We need to rebalance the economy," John Longworth, director general of the BCC, said.

"In addition, the government's policy [on the cost of living] has created an irresistible pressure to increase wages settlements, despite the downward pressure on wages created by the continuing migration to the UK.

"Businesses find themselves worn out and stagnation."

Sunny Plateau

On Wednesday, the National Audit Office report revealed the risks faced by major UK infrastructure projects such as road and rail development, the delivery of which is a key component of economic prosperity.

More than a third were in danger or "unreachable" if corrective measures are not taken.

The government can make big promises. Providing them more problematic.

Of course, there is a political edge question, Mr. Osborne.

Chancellor knows very well that if people are concerned about the economy, polls show that they tend to turn to the Conservatives, as a variant of "security."

So, voters concerns, Mr. Osborne said, it's not always a bad thing for his party.

I was told that there will be some "sunny uplands" elements in the speech from the Chancellor that growth in the UK was better than "almost everyone dared to hope."

But, with his dark boots, the Chancellor tramping pretty familiar territory.

Oil prices briefly fall below $ 30 per barrel

Dmitry MedvedevImage copyrightGetty Images
Image captionRussian Prime Minister Dmitry Medvedev (right) during a visit to the factory, which makes steel tubes for the oil and gas industry in the Urals
Oil prices briefly fell below $ 30 per barrel in international markets for the first time since April 2004 before recovering again.

Brent crude, used as an international benchmark, fell to $ 29.96, but bounced back to trade at $ 30.22.

Oil prices have fallen by 70% over the past 15 months.

Earlier, Prime Minister of Russia Dmitry Medvedev warned tumbling oil prices may force his country to reconsider its budget in 2016.

He said that the country should be ready to "worst" economic scenario, if the price continues to fall.

Taxes on oil and gas produces about half of the income of the Russian government.

2016 federal budget, which was approved in October was based on an oil price of $ 50 per barrel in 2016 - the figure of President Vladimir Putin has since described as "unrealistic".

Government departments were ordered to cut costs by 10%, repeating the policy, introduced in 2015, according to Reuters.

Pensions and pay for civil servants will be protected from the cuts, which could save up to 700 billion rubles (£ 6,3 billion $ 9.1 billion).

Finance Minister Anton Siluanov said that Russia's budget can only be balanced at an oil price of $ 82 per barrel.

"New Realities"

According to him, the budget 2016 should be revised to assume oil prices of $ 40 per barrel.

"Our challenge is to adapt our budget to the new realities," said Mr. Siluanov.

Anton SiluanovImage copyrightGetty Images
Image captionRussian Finance Minister Anton Siluanov
Economy Minister Alexei Ulyukayev warned that Russia faced a long period of low commodity prices, with oil at $ 15 or $ 20 a barrel.

"The biggest risk is that there will be a low price for a long time - that is, for many years, for decades," he said.

Mr. Medvedev also said that high interest rates are holding back economic growth in Russia.

Russian Bank held rates at 11% in the last month, with the governor of Elvira Nabiullina, warning of "high volatility" in world markets.

A year ago, the central bank shocked markets by increasing the rate from 10.5% to 17%.

Inflation is 15% in Russia, but the bank expects it to fall to 4% next year.

The wealth of the richest 1% 'is the other 99%'

Luxury Yacht NiceImage copyrightGetty Images
The richest 1% now has as much wealth as the rest of the world combined, according to Oxfam.

It uses data from Credit Suisse in October on the report, which calls on the leaders meeting in Davos this week to decide on inequality.

Oxfam also estimated that the richest 62 people in the world had as much wealth as the poorest half of the world's population.

He criticized the work of lobbyists and the amount of money stored in tax havens.

Oxfam predicted that 1% of the world catch up with the rest of this time last year.

It takes cash and assets in the amount of $ 68,800 (£ 48,300), to get into the top 10%, and $ 760,000 (£ 533,000) to be 1%. This means that if you have an average house in London without a mortgage, you are probably in the 1%.

The figures are different reefs, for example, information about the wealth of the super-rich is hard to find that Credit Suisse says it means the estimate of the proportion of wealth owned by 10% and 1%, "probably err on the low side."

As a global report, these figures are also sure to include some assessment of well-being in the countries from which the precise statistics are not available.

Oxfam said that the 62 richest people, with so much wealth as the poorest 50% of the population is a remarkable concentration of wealth, given that it would take 388 individuals to have the same wealth as the bottom 50% in 2010.

Comparison Chart wealth of 62 richest people in the lower 50%
"Instead of an economy that works for the benefit of all, for future generations, and for the planet, we instead created the economy by 1%," Oxfam said in a report.

The trend during the period that Credit Suisse provides, this study was the fact that the share of the wealth is in the top 1% has fallen gradually from 2000 to 2009 and has risen every year since then.

In fact, it is only in 2015 figures, that the proportion owned by the top 1% ahead of the share taken by them in the first report in 2000.

Oxfam calls on governments to take action to reverse this trend.

He wants to pay workers a living wage, and the gap narrowed with executive rewards.

It calls for an end to the gender gap in wages, compensation for unpaid child care and equal land rights and inheritance rights for women.

And wants the government to take action on lobbying, reducing drug prices by taxing wealth, rather than consumption, and using progressive government spending to address inequality.